Bull of the Day: Boot Barn (BOOT)
Very low volume for the stock market has led to a boring week for investors. That’s all about to change as earnings season is in full swing. Investors will be looking to see whether the negative impacts of the trade war with China are getting better or worse. Ahead of the season, there are plenty of stocks out there with solid earnings stories which could lead to some serious upside surprises. One way to find these strong earnings stories is to utilize the Zacks Rank. Here, today’s Bull of the Day is one of those strong earnings stories, Boot Barn (BOOT).
Boot Barn Holdings, Inc., a lifestyle retail chain, operates specialty retail stores in the United States. The company's specialty retail stores offer western and work-related footwear, apparel, and accessories for men, women, and kids. It offers boots, shirts, jackets, hats, belts and belt buckles, handbags, western-style jewelry, rugged footwear, outerwear, overalls, denim, and flame-resistant and high-visibility clothing. The company also provides gifts and home merchandise. As of August 7, 2018, it operated 232 stores in 31 states.
The reason for the favorable Zacks Rank lies in the series of earnings estimates to the upside. Over the last sixty days, Boot Barn has seen analysts increase earnings estimates for the current year and next year. That bullish behavior has pushed up our Zacks Consensus Estimate for the current year from $1.29 to $1.33 while next year’s number has gone up from $1.46 to $1.51.
Boot Barn Holdings, Inc. Price and Consensus
Those positive revisions have helped underpin a move higher in the stock. The stock bottomed out on Christmas Eve along with the rest of the broad market. Trading under $16 at the time, Boot Barn has nearly doubled off the lows. There’s a ton of positive momentum here in the stock. The 50-day moving average is several dollars below the current price, down at $28.12. Volumes have increased over the last couple weeks as well.
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